The deal is Ally’s second this year, propping up the lender’s ABS volume to $2.24 billion since January. Ally’s latest transaction consists of prime fixed-rate retail vehicle installment sales contracts secured by new and used vehicles. Ally had 3.24 million retail contracts outstanding as of March 31, a 19% increase compared with the prior-year period.
Compared with Ally’s February securitization, the new deal shows a Fico score increase to 736.8, up from 735. Meanwhile, the weighted loan-to-value ratio decreased to 93.2% compared with 93.4% and the percentage of used vehicles grew to 30%, up from 29.6%.
The managed portfolio’s net losses, as the average of net receivables, increased to 1.17% compared with 1.06% for the year prior. Additionally, the portfolio’s 30-plus-day delinquencies as a percentage of the month-end receivables balance were 2.20%, up from 1.79%.
The increases in delinquencies and losses are “consistent with [Ally’s] expectations and reflect a growing asset base and more balanced and profitable asset composition,” S&P noted.
Though the rating agency “continues to observe an increase in delinquencies and losses” in the managed portfolio, S&P views the transaction as a “better collateral mix as evidenced by the higher percentage of new vehicles,” according to the presale report. New vehicles represent 70% of the collateral mix, compared with 39% in the managed portfolio.
Auto ABS volume overall was $51.8 billion as of May 24, up 9.5% year over year, according to JPMorgan Securities. Other securitizers in the past two weeks include American Credit Acceptance with a $274.8 million transaction, Capital One Auto Finance with a $1.1 billion transaction, and American Honda Finance with a $1.5 billion transaction.